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In 1993, Wallace reached the final of the Winmau World Masters, losing to Steve Beaton. He won the title five years later, beating Alan Warriner in the final.

Wallace made his first appearance at the World Championship in 1995, losing a first-round match to Raymond van Barneveld. In the 1996 Championship, he lost to the defending world champion, Richie Burnett, in the semi-finals.

In 1997, Wallace defeated Bob Taylor in the first round and then beat van Barneveld 3–2 in the second round. He went on to win the World Championship with further wins against Paul Williams, Mervyn King, and a 6–3 victory over Marshall James in the final. Wallace became the first left-handed player to win a either a PDC or BDO World Championship.

Wallace was unable to defend his title at the 1998 championship. He managed only two more match victories at Lakeside, where the BDO Worlds were held. His title defence of his title ended with a second-round loss to Steve Beaton, another former World Champion. Wallace was beaten again by van Barneveld in 1999 in the second round, having had darts at double to win. In 2000, Wallace lost to Ritchie Davies in the first round; he did not qualify to play at the World Championship afterwards.